Citigroup to sell buffer securities due 2020 tied to SPDR S&P 500

By Sarah Lizee

Olympia, Wash., March 21 – Citigroup Global Markets Holdings Inc. intends to price 0% buffer securities due May 6, 2020 linked to the SPDR S&P 500 ETF trust, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Citigroup Inc.

If the fund return is positive, the payout at maturity will be par plus the gain, capped at par plus 8% to 10%.

Investors will receive par if the fund falls by up to the buffer amount of 7%.

Otherwise, investors will receive cash buffer of $70 per $1,000 note plus a fixed number of shares of the fund equal to the equity ratio, which is the principal amount divided by the initial underlying value, or the cash value of those shares at the issuer’s option.

Citigroup Global Markets Inc. is the underwriter.

The notes (Cusip: 17326YGL4) will price April 23.

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